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Issue 9 of Australasia outlook magazine
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AUSTRALASIAissUe 09 | JUne 2012 | www.aUstralasiaoUtlook.coM
Is the Flying Kangaroo on the brink?
also this issue
AUSTRALIA’S LEADING SWIMMING POOL DESIGNER
AQUATIC LEISURE TECHNOLOGIES
ATLAS COPCOATLAS COPCOATLAS COPCOATLAS COPCOATLAS COPCO
BEST TRACTOR PARTSBEST TRACTOR PARTSBEST TRACTOR PARTS
THE TAPPOO GROUPTHE TAPPOO GROUPTHE TAPPOO GROUP
Mining tax takes effectLife as we know it has changed – the end of the financial year has brought into effect two major taxes, the carbon tax and the mining tax. They took immediate effect on July 1.
According to the Australian Industry Group, 42 percent of businesses in the manufacturing, services and construction sectors will now raise their selling prices in response, but its true effects remain uncertain.
On page 22 we examine the carbon tax, look at how it will affect business and importantly how it’ll affect everyday people and households.
Opposition Leader Tony Abbott has repeatedly called on government to scrap it arguing it will swing like a “wrecking ball” through the economy and squeeze household budgets like a “python”.
Prime Minister Julia Gillard however has said that Labor’s multibillion dollar compensation package will mitigate any rises and Australians would come to see it’s the right policy direction for the nation.
“It is appropriate with all of that doom has been spread around for months and months, for us to say to people, look the doomsayers were wrong,” she said.
This month we also look at Qantas’ decline, visit Vietnam, and we profile the Tappoo Group of companies, a business that is very much a Fiji icon. Of course we also bring you all the latest news and you can find a lot more useful insight inside. My personal favourite is on page 50 where we visit Floridia Cheese.
Enjoy the magazine!
Welcome
Ian ArmitageEditor
EdItorIAl Editor Ian Armitage
Editorial AssistantClare durrant
Writers Colin Chineryduncan Forgantom Sturrock
BuSInESSAdvertising Salestomas Aras
Editorial researchersluke MurrayMaxime dupoisBrandon Bloch
Sales administratordaniel George
ACCountSFinancial controller Suzanne Welsh
ProduCtIon & dESIGnMagazine design – optic JuiceProduction manager– Jon CookeImages: Gettynews: nZPA, AAP, SAPA
dIGItAl & ItHead of digital marketing & development – Syed Ahmad
tnt PuBlISHInG CEo - Kevin EllisChairman - Ken HurstPublisher - tnt Multimedia limited
tnt Multimedia limited,unit 209, 16 Brune Street, london E1 7nJ
EnquIrIEStelephone: 00 61 (0) 2 8332 [email protected]
SuBSCrIPtIonStelephone: 00 61 (0)2 8518 [email protected]
www.australasiaoutlook.com
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contents
Featuresn e w s
Q a n t a s I n a t a I l s P I nQantas has warned MPs it could go under if Etihad increases its stake in Virgin Australia
v I e t n a M b y b I K eCockfi ghting, fried rat and lazy locals – explore the exotic world of southern Vietnam as you cycle through the Mekong Delta
t H e C a r b o n t a x e x P l a I n e d From July 1 some 300 companies and other entities will face a bill of A$23 for every tonne of carbon dioxide they emit
s w I M M I n G a l o n G n I C e l yPool ColourGuard® is the world’s fi rst non-fading surface protection system for fi breglass pools
I n s P I r I n G y o u t o M a K e t H e r I G H t C H o I C eAtlas Copco is an industrial group with world-leading positions in several markets
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Focus Manufacturing
d I G G I n G d e e P f o r s u C C e s s Best Tractor Parts is dedicated to sourcing and servicing mining parts and equipment from all over the world
t a K I n G I M P o r t a n t s t e P s f o r w a r dUnitywater’s acting CEO George Theo talks about the challenges facing the utility
u n I Q u e l y f I J I a nAustralasia Outlook profi les The Tappoo Group, an integral part of the business environment in Fiji
C H e e s y f e a tFloridia Cheese is Australia’s most respected traditional Italian cheese manufacturer
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Focus utilities
Focus Mining
Focus Food and Agriculture
Focus travel
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newsC a r b o n t a x
Businesses back carbon price
Almost 300 Australian businesses including Westpac, AGL, Unilever and GE have signed a joint statement backing a price on carbon.
The A$23 per tonne price on carbon emissions started on July 1, impacting directly on 294 electricity generators and other companies.
The federal government is aiming to cut carbon emissions by five percent by 2020, with the carbon tax shifting to an emissions trading scheme in 2015.
The Businesses for Clean Energy consortium members say a carbon price will underpin the move to a clean economy.
Spokesman Nathan Fabian told AAP there was strong support in the business community for carbon pricing, but the coalition’s commitment to abolish it was creating uncertainty.
“Businesses have accepted there will have to be some sort of price constraint on carbon,” he said.
r e s o u r C e s
new coal seam gas project takes major step forward
A major coal seam gas project in central Queensland is a step closer towards production with the state government issuing draft terms of reference for an environmental impact statement.
Arrow Energy’s Bowen Gas Project is one of two coal seam gas developments that will form part of the company’s liquefied natural gas (LNG) project.
Arrow Energy CEO Andrew Faulkner says the project would develop up to 7000 gas wells over the next 40 years, each with a lifespan of 15 to 20 years.
Coal seam gas will be transported from the Surat and Bowen Basins in central Queensland to be liquefied at an LNG plant at Curtis Island, off Gladstone.
“The Bowen Gas Project will help meet the growing demand for gas overseas,” Mr Faulkner said in a statement.
r e s o u r C e s
qld jobs boost, lnG project to expand
The owners of the Australia Pacific liquefied natural gas (APLNG) project have announced they’ve committed to developing a second stage of the massive A$23 billion gas project, creating an extra 2,000 jobs in rural Queensland.
The project was set up by joint venture partners Origin Energy, US giant ConocoPhillips and China’s Sinopec to develop one of Australia’s biggest coal seam gas (CSG) resources in the Surat and Bowen basins.
The partners will build a major transmission pipeline to deliver CSG to processing plants on Curtis Island off the
coast of Gladstone, from where the CSG will be frozen and converted to LNG for export.
A decision to build the first compressor plant was made in mid-2011 but the joint venture partners delayed a commitment to a second.
They have now approved a final investment decision for the second plant after sealing a 20-year supply contract with Japanese power company Kansai.
LNG exports from the first plant are due to begin in 2015 with the second plant coming onstream a year later.
Another 2,000 workers will need to be hired to build the second plant adding to the 4,000-strong workforce already in place.
About 1,000 workers will run the plants once they are complete with each facility having a production capacity of 4.5 million tonnes per annum.
5
t r a v e l
Virgin beats qantas on domestic routes
Virgin Australia has finally done it – it carried more domestic passengers than its arch rival Qantas over the 12 months to the end of May, a first for the industry’s traditional number two.
Virgin carried 1.42 million domestic passengers in May, which compared to 1.37 million passengers who flew with Qantas Domestic.
It is not the first time Virgin’s domestic operations have carried more passengers than Qantas in a single month, but Virgin has for the first time out-performed Qantas over a 12-month period.
In the year to May 31, Virgin carried 15.53 million domestic passengers compared to Qantas’ 15.49 million domestic passengers.
The Qantas figures do not include passengers who flew with its fully-owned subsidiary Jetstar, which carried 830,000 passengers in May and 9.84 million passengers in the year to May.
Nor do they include the 4.76 million passengers who flew with QantasLink in the year to May.
Qantas’ fleet grounding in October was a major factor, which contributed to an 11 percent drop in domestic passenger numbers in that month.
J o b s
Alcoa smelter rescued but jobs will go
A federal/Victorian government rescue package of more than A$40 million will keep Alcoa’s Victorian smelter open for at least another two years but the company said that dozens of jobs will still go.
About 60 jobs were likely to be lost and the company would seek voluntary redundancies soon.
Alcoa Australia chairman Alan Cransberg has been conducting a three-month review of the Victorian operation – and he said that although there were “tough times ahead” he is optimistic about the smelter’s future.
“There are some tough times ahead, we still have some difficult things we need to do, but we’re very confident of running this plant at least until 2014 and over that period making sure that we can create a future for it beyond 2014,” he told reporters in June.
According to Mr Cransberg the company had poured hundreds of millions of dollars into the smelter in recent years only to suffer “unsustainable losses” and changes were
needed in its production, supply chain and management.
Federal Innovation Minister Greg Combet said the rescue package required Alcoa to invest in better productivity, keep the smelter open until at least July 2014 and maintain production levels.
“We want to work together to ensure that this smelter achieves ongoing viability, because it will ensure the future of almost 600 direct jobs and hundreds if not thousands of others in the region,” he said.
Victorian Premier Ted Baillieu added that, “This is very much a part of this region, a part of Geelong and a part of Victoria, and we do want to see Alcoa flourish.”
The company will receive A$40 million in commonwealth funding and an unspecified amount from the state government to make its struggling Point Henry site - which employs about 600 people - more efficient.
Unions said the announcement was a huge relief for workers.
6
newsP r o P e r t y
Building approvals jump 27.3%
Australian residential building approvals rose 27.3 percent in May, seasonally adjusted.
According to the Australian Bureau of Statistics figures a 58.7 percent jump in `private sector dwellings excluding houses’, which includes multi-story units and townhouses, was the major driver of the rise.
The result is welcome news for the sector and there are signs that developers are getting better access to funding.
lend lease shares rise on profit hopes
Developer Lend Lease expects a modest rise in operating profit for the 2011/12 financial year – delighting investors.
Shares in the firm bounced by more than four percent when it said it was on track to achieve an operating profit after tax of A$485 million-A$505 million for the year to June 30.
The news caused Lend Lease shares to rise 31 cents to A$7.51.
Australian Stock Report head of research Geoff Saffer said operating profit was higher than expected.
“The market had expectations of about A$450 million so it’s quite a bit stronger than what the market was expecting,” he said.
“It’s flat to five per cent higher than what they announced last year and about 10 percent higher than what many analysts had been expecting.”
The result excludes any profits from the Barangaroo South development in Sydney’s CBD.
Lend Lease posted an operating profit after tax of A$485.3 million for the year to June 30, 2011.
I n d u s t r y
Aus manufacturing contracted in June
Australia’s manufacturing sector contracted for its fourth straight month in June, a private sector survey shows.
The Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI) remained below the key level of 50 points in June, indicating the sector continued to contract.
However the index rose 4.8 points to 47.2 points, indicating the sector contracted at a slower pace compared to the previous month.
Eight of the 12 manufacturing sub-sectors - including wood products and furniture, food and beverages textiles and chemicals – registered declines.
l I f e s t y l e
Holden issues Cruze recall
Carmaker Holden has recalled more than 9,500 locally built Cruze cars to check on a problem that could lead to an engine fire.
The company says the precautionary recall has been instigated in response to a recall by General Motors in the US of certain Chevrolet Cruze models.
Holden said a condition had been identified where the lower air deflector, also known as the belly pan, could catch oil that might drip from the engine if an oil change was not done properly.
If that oil made contact with hot engine parts a fire could occur, it said.
“We believe Australia’s high standards in servicing procedures significantly reduce the risk of improper oil changes which
almost eliminates the risk of a thermal incident,” Holden’s director of warranty, customer satisfaction and quality Craig Porritt said in a statement.
“However we will always err on the side of caution when it comes to initiating safety recalls and campaigns.”
According to Holden the recall affects about 9,547 Cruze vehicles in Australia fitted with a 1.4 litre petrol engine.
The company is contacting customers directly to arrange for the free modification of the lower air deflector under the engine.
There have been no reported cases of engine compartment fires in Australia or New Zealand related to this condition.
7
b u s I n e s s
nZ commodity prices fall to 2-year low
New Zealand commodity prices fell to the lowest level in more than two years in June, led by dairy products.
The ANZ Commodity Price Index fell 2.4 percent last month to its lowest level since March 2010, the fifth straight monthly decline.
Whole milk powder fell seven percent, leading a four percent slide in prices of dairy products. Dairy prices have fallen to their lowest level in 33 months, according to the ANZ index.
Aluminium fell six percent to a 32-month low and wool declined five percent.
Seafood and butter fell four percent and kiwifruit dropped three percent.
Casein and beef prices fell two percent, while cheese and pelts fell one percent.
Logs, apples and skim milk powder all rose two percent and lumber prices gained one percent.
Lamb, wood pulp and venison prices were unchanged in the month.
l I f e s t y l e
Kiwis’ Aus exodus slows
The net outflow of Kiwis moving permanently to Australia for a better life slowed in May, with the first monthly decline in over two years, new data shows.
There was a net loss of 3,200 migrants to Australia last month, down from a net outflow of 3,300 in May 2011 - the first time the monthly net loss has declined since April 2010 - according to Statistics New Zealand.
People have been quitting New Zealand for Australia for years seeking higher wages and a better standard of living.
However figures this week showed the New Zealand economy grew 1.1 percent in the first quarter, closing in on Australia’s growth of 1.3 percent – a sign things might be changing.
Figures released from the 2011 Australian census showed New Zealanders remained the second biggest migrant group, after England, in Australia.
l I f e s t y l e
Gilham acquitted of killing parents
Jeffrey Gilham has been acquitted of the 1993 stabbing and killing of his parents by the NSW Court of Criminal Appeal.
Mr Gilham, 42, walked out of court telling reporters, “I am very happy to be going home a free man”.
He was acquitted on the basis of new evidence that would substantially weaken the crown case in another trial.
Last December the court quashed Mr Gilham’s murder convictions and released him on bail.
He was jailed for life in March 2009 after he was found guilty of murdering his parents Helen and Stephen Gilham at their Woronora home in south Sydney on August 28, 1993.
Their elder son Christopher, 25, was stabbed to death in the same incident.
Mr Gilham, a civil engineer, had always maintained Christopher had killed their parents and set his mother’s body alight, which provoked him to fatally stab his sibling.
Mr Gilham was placed on a five-year good behaviour bond for his brother’s manslaughter in 1995, but he was charged with the murders in February 2006 following a third police investigation.
The first trial jury failed to reach a verdict and was discharged, but in November 2008 Mr Gilham was found guilty of both murders.
In his appeal Mr Gilham relied on 18 grounds including fresh evidence relating to the level of carbon monoxide in the bodies of the deceased.
The judges unanimously accepted each of the deceased members of the Gilham family was alive when the fire which destroyed the house was lit, thereby contradicting “two central elements” of the crown case.
8
newsl I f e s t y l e
Assange in bold bid for political asylum
Wikileaks founder Julian Assange has made a bold attempt to claim political asylum at Ecuador’s London embassy.
He walked into Ecuador’s embassy in a last-ditch effort to avoid extradition.
Police have warned however that in doing so he breached bail and faces arrest.
Mr Assange’s bail conditions included staying at his bail address between 2200 and 0800 BST.
He recently failed to reopen an appeal against his extradition to Sweden where he is wanted for questioning over rape and sexual assault allegations - he denies any wrongdoing.
Australian National University international law expert Donald Rothwell believes his bold bid for asylum in Ecuador may well pay off.
“He’s made a calculated judgment that on the basis of his interactions with the Ecuadorian government that he’s fairly confident he will be granted asylum by this particular country,” Professor Rothwell told AAP.
“But ultimately whether Ecuador grants him asylum is a political judgment based on whatever arguments or evidence Mr Assange is able to put to support his case.”
The Australian-born 40-year-old fears removal to Sweden could pave the way for extradition to the US to face possible charges - and a possible death sentence - over WikiLeaks’ release of thousands of diplomatic cables.
e u r o z o n e C r I s I s
Eurozone faces ‘deep challenges’ says Swan
Australian Treasurer Wayne Swan says the eurozone’s latest jobless figures highlight the deep-seated challenges facing the region despite some progress in resolving its debt crisis.
Official figures showed the eurozone’s unemployment rate had climbed to a record 11.1 percent in May, with Spain the hardest hit at 24.6 percent.
More than 17.5 million people were jobless in the 17-nation single currency area in May, as 88,000 more
people joined unemployment queues, according to Eurostat data agency.
Mr Swan said that while there was some progress at a recent European Union leaders summit, the figures were a stark reminder of the “profound human toll” of the European sovereign debt crisis.
“Europe still faces deep-seated challenges that will take many years to address,” he said in a brief statement.
Eu helps Spain, Italy
EU leaders have agreed to use the eurozone’s bailout fund to support Spain’s bank sector, easing concerns that the region’s debt crisis is spreading.
European Union President Herman Van Rompuy confirmed that EU leaders will drop the requirement that governments get preferred creditor status on Spain’s banks.
The accord paves the way for the eurozone’s 500 billion euro bailout fund to recapitalise ailing banks directly without passing through national budgets and adding to struggling countries’ debt mountains.
Earlier this month Spain agreed to take a rescue loan of as much as 100 billion euros to help recapitalise its banking sector.
EU leaders also agreed on measures to aid crisis-hit Italy, as well as provide billions to boost the economy.
Italian Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy had threatened to block a wider “growth pact” unless they won concession on short-term moves to drag their economies from the mire.
Monti told reporters afterwards: “Everything is very important for the future of the EU and the eurozone. Italy is doubly satisfied.”
The summit’s main focus was to help Spain and Italy whose borrowing costs have continued to soar.
9
e u r o z o n e C r I s I s
Euro problems sparked June rate cut
Problems in Europe were the main factor for central bank cutting the cash rate in June.
The Reserve Bank of Australia (RBA) decided to cut its cash rate by 0.25 percent on June 5 after a 0.5 percent cut on May 1, taking it to 3.5 percent.
The minutes of the RBA’s June board meeting published on Tuesday showed the fallout from the euro area’s government, budget and debt problems took centre stage.
“There was clear evidence of a softening in global economic conditions, and uncertainty about the future in Europe had increased significantly,” the RBA minutes said.
w o r l d
More banks investigated over rate fixing
More global banks are being investigated for the alleged financial market manipulation that led to fines of US$453 million against Barclays Bank, British Chancellor George Osborne says.
Regulators in the US and Britain fined Barclays for manipulating the interest rate - the London interbank offered rate or LIBOR - to its advantage between 2005 and 2009. The rate is used to price mortgages and consumer loans.
Mr Osborne said Barclays was not the only bank involved in market fixing.
There are investigations in several countries involving, among others, Citigroup in the US, Switzerland’s UBS and Britain’s HSBC and Royal Bank of Scotland.
Britain’s Financial Services Authority (FSA) said it had evidence Barclays traders were in touch with people in other banks.
“Banks were clearly acting in concert,” said Andrew Tyrie, Treasury Committee chairman in the House of Commons. “I fear it’s not going to be the end of the story, that we are going to find that other banks have been involved.”
w o r l d
Barclays CEo Bob diamond resigns
Barclays chief executive Bob Diamond has resigned with immediate effect.
The move came less than 24 hours after the resignation of chairman Marcus Agius and less than a week after the bank was fined for trying to manipulate inter-bank lending rates.
Mr Diamond said he was stepping down because the external pressure on Barclays risked “damaging the franchise”.
Barclays was fined £290 million for attempting to manipulate the Libor inter-bank lending rate.
Britain’s Serious Fraud Office is reportedly considering whether it was “both appropriate and possible to bring criminal prosecutions” over the issue.
Prime Minister David Cameron said people “want to see bankers who acted improperly punished, and they want to know we will learn the broader lessons of what happened in this particular scandal”.
Cameron said Britain also needed to raise taxes on banks and introduce “the toughest and most transparent rules on pay and bonuses of any major financial centre in the world”.
The inquiry would “be able to start immediately”, the prime minister said. “It will get to the truth quickly so we can make sure this never happens again.”
w o r l d
olympus ordered to pay back taxes
Japanese authorities have ordered camera and medical equipment maker Olympus to pay about Y5 billion ($A61.05 million) in back taxes and penalties, as the disgraced firm tries to recover from a loss cover-up scandal.
The liability is tied to a Y15 billion ($A183.14 million) advisory fee that Olympus claimed to have paid during its 2008 acquisition of British medical equipment maker Gyrus Group, the Nikkei business daily and Jiji Press reported.
The Tokyo Regional Taxation Bureau told the camera and medical equipment maker that it must pay about Y5 billion over the undeclared fee, which was actually part of a bid to conceal losses at the firm, the reports said.
10
newsw o r l d
Microsoft takes $6.2B writeoff
Software giant Microsoft is absorbing a US$6.2 billion charge on the value of an online advertising firm bought in 2007.
Microsoft bought aQuantive for US$6.3 billion cash in an attempt to catch rival Google in the race to grow revenues from search-related advertising.
The aQuantive deal ranked as the most expensive deal in Microsoft’s history until it was eclipsed last year by the company’s US$8.5 billion purchase of internet video chat service Skype.
The company said in a statement that, “the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down”.
Microsoft, which is based in Redmond, Washington, is scheduled to release its latest quarterly results on July 19.
rIM posts big loss, delays BB10 launch and cuts 5,000 jobs
BlackBerry maker Research in Motion Ltd (RIM) has revealed that its business is crumbling faster than expected, posting worse than expected results for Q1.
The smartphone maker said it will cut 5,000 jobs and is delaying the launch of its new phone operating system BlackBerry 10 (BB10) on which it’s pinning its hope for a comeback.
The first phone with BB10 was expected later this year. It will now ship in the first quarter of next year, CEO Thorsten Heins said.
“Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January,” Heins said in a statement.
“I am not satisfied with these results and continue to work aggressively with all areas of the organisation and the board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the company on areas that have the greatest opportunities.
“Our top priority going forward is the successful launch of our first Blackberry 10 device, which we now anticipate will occur in the first quarter of calendar 2013.”
The jobs cuts are part of a previously announced initiative to cut US$1 billion in annual costs this year. They represent about a quarter of RIM’s work force.
RIM lost US$518 million in its fiscal first quarter which ended June 2. This compares with a profit of US$695 million a year ago.
w o r l d
Manchester united files for IPo in uS
English Premier League giants Manchester United plans to go public – but in the United States, not Asia as previously expected.
The 19-time English champions filed a registration statement with the US Securities and Exchange Commission on Tuesday to hold an initial public offering of stock and become a listed company on the New York Stock Exchange.
While the stock price and the number of shares were not listed, the registration statement said the club hoped to raise a maximum of US$100 million.
The Glazer family, which bought the club in 2005, would retain control over the club through Class B shares, which would have 10 times the voting power of the shares that would be sold to the public.
Under the reorganisation, the team would become a wholly-owned subsidiary of Manchester United Ltd, a newly formed holding company based in the Cayman Islands.
11
White wash: England seal crushing series victory over Australia
Australia captain Michael Clarke has called for a thorough debrief of the one-day team’s recent performances after they took another thumping against England for an embarrassing 4-0 series loss.
Test and Twenty20 world leaders England won the fifth and final one-day international at the Oval to record their 10th straight one-day win.
It’s Australia’s worst one-day international series defeat in 40 years.
Clarke side may now lose their No.1 world ranking with England facing South Africa in a one-day series from next month.
“I would like to say our goal is to be No.1 in all three forms of the game,” Clarke said.
“We have been giving guys an opportunity through one-day cricket to have a look at them for Tests as well but I don’t think we have prioritised Test cricket to a level to say we will sacrifice T20 or one-day.
“Australians want to be the best at what they do and my goal is to stay at No.1 in the one-day format, get back there in the one-day format.
“I think we have enough good players in the country. We are going to have to work our backsides off but I think we have enough talent to be No.1 in all three forms of the game.”
Despite Clarke’s bold and aggressive reminder to his countrymen of the team’s ambitions, he was also realistic enough to acknowledge the challenge that England pose in the world game, along with South Africa.
“England’s bowling attack is the best there is at the moment,” Clarke said.
“South Africa are right up there at the moment and that is why England have played their best attack in the one-dayers.
“We can learn a lot from this series. We go to Dubai in a few weeks and can turn it around there.”
s P o r t
Spain make history, plot route to Brazil
Spain coach Vicente Del Bosque praised a “great generation” of footballers after his side became the first to capture a third successive major title by winning Euro 2012.
Spain controlled the game in their 4-0 victory over Italy, but Cesare Prandelli’s Italy were unlucky in having to play the last 30 minutes with 10 men because of an injury to substitute Thiago Motta.
“Everyone loses sometimes and the Italians have played a great tournament. They had the bad luck of the injury to Thiago Motta and that is where it ended for them unfortunately, but their reaction was great,” Del Bosque said.
Motta pulled a hamstring in the 62nd minute and Prandelli had no substitutes left, having also lost defender Giorgio Chiellini with a knee injury in the first half and made another substitution
- Antonio Di Natale for Antonio Cassano - at halftime.“We had the ball possession, the pressure, the depth. This success is something historic and now we have to look to the future,” Del Bosque said.
“We are talking about a great generation of footballers. They have roots, they know how to play and have come from a country which knows how to play. We have done a great job.
“We have great lads who play abroad and that was impossible
before. Now foreigners want our players so this is a great era for Spanish football.”
Del Bosque, who has become only the second coach to lead sides to both the European Championship and the World Cup after Germany’s Helmut Schoen said the next aim would be to qualify for the 2014 World Cup in Brazil, but the coach added “we don’t only have to think about Brazil but afterwards as well.”
Other nations beware.
12
Following reports that Qantas has warned MPs it could go under if Etihad increases its stake in Virgin Australia, we ask is the Flying Kangaroo on the brink?
By Ian Armitage
EtIHAd AMBItIon PutS qAntAS In A tailspin
13
According to reports in the media Qantas management has told MPs
the airline could go under if Etihad increased its stake in Virgin Australia.
The Flying Kangaroo is just a fraction ahead of its rival carrier and management has warned of dire consequences if the state-owned Etihad is allowed to buy enough of a share of Virgin Australia to allow it to start undercutting Qantas on its profitable domestic routes.
Qantas’ CEO Alan Joyce and a small delegation reportedly went to Canberra to lobby the government and the opposition over Etihad’s push into Virgin, warning it cannot compete with a state-owned rival backed by a bottomless pit of funds from the United Arab Emirates.
Qantas argued that either the Foreign Investment Review Board limits the scope of Etihad’s purchase of Virgin or Qantas be freed of the constraints of the Qantas Sale Act - which restricts levels of foreign investment and Qantas’ business options.
It wants a level playing field and warned Abu Dhabi-based Etihad would “cross-subsidise Virgin’s domestic business with the specific aim of weakening Qantas”.
“Virgin/Etihad will be able to flood the market with capacity until its competition is forced to significantly reduce its own operations or worse,” Fairfax Media quoted a Qantas briefing paper as saying.
Etihad recently bought almost five percent of Virgin Australia and is understood to be seeking 10 percent.
Qantas on the brink?
14
Qantas believes it is after a greater share.
A Qantas spokesman dismissed reports as “pure speculation” but confirmed Mr Joyce had been to Canberra.
“Qantas CEO Alan Joyce and a number of executives did meet with members of parliament from both sides this week to discuss a range of issues,” he said.
Shadow Treasurer Joe Hockey said he doubted Qantas would go under.
“I don’t think it’s going to go under if Etihad increases their stake holding,” Mr Hockey told the Seven Network.
“Already Air New Zealand and Richard Branson have much larger stakes as foreign investors in Virgin than Etihad.”
He admitted that if rival Etihad expands into the local market tough choices have to be made about the Australian airline’s future.
“We have to make a decision about whether Qantas does become a major international airline with a majority ownership overseas.
“Or whether we want to retain it and pay a price for retaining it as an Australian icon.”
Mr Hockey also backed fast talking Irishman Alan Joyce’s leadership.
“Mr Joyce is doing a great job as chief executive,” he said. “This guy has been under the pump. The unions have been outrageous with Qantas and all strength to his right arm for changing the company.”
So is Qantas really on the brink? Well many would say so – Mr Joyce has announced a major restructure that splits its business into domestic and international units, appointed a number of new chief executives (while ousting his touted successor in the process), unveiled plans for a premium airline
“Virgin/Etihad will be able to flood the market with capacity until its competition is forced to significantly reduce its own operations or worse”
Qantas on the brink?
15
in Asia and sparked his own industrial relations revolution by grounding the entire Qantas fl eet. Then there was the surprise profi t downgrade and now there is talk of a hostile takeover.
“I think it’s one of the toughest gigs in Australia. I really mean that,” former Qantas chief executive James Strong told The Power Index. “It is so public. It’s in a complex, irrational industry. And everybody’s got an opinion about it. It’s in the limelight all the time and it’s political.”
What is clear is that Virgin Australia is confi dent it will nab an even greater slice of the Australian market due to the problems at Qantas - souring fuel prices, an aging fl eet, a heavily unionised workforce and diffi cult-to-match competition from nationalised airlines overseas.
Does it mean the end? No. Qantas started with one plane back in the 1920s and grew to
be Australia’s biggest and most successful airline. It is the airline most Aussies grew up with and because of that its brand alone is estimated to be worth as much as A$1 billion.
What is clear is that the national fl ag carrier has an uncertain future: just where it will land is unknown.
“There’s been a lot of talk about Qantas’s performance in terms of an airline of choice to fly, both domestically and internationally,” an industry insider told Australasia Outlook. “Qantas is flying through turbulence on all fronts these days. It is losing money and market share. It comes down to choice and preference. Will people continue to fly with Qantas or are they fed up? Qantas has spectacularly underperformed. It had a privileged market position and blew it.”
“We have to make a decision about whether qantas does become a major international airline with a majority ownership overseas”
Qantas on the brink?
16
17
Cockfi ghting, fried rat and lazy locals – explore the exotic world of southern Vietnam as you cycle through the Mekong Delta.
By Duncan Forgan
Vietnam by bike
My head is pounding, my legs are weak and my face is a lurid
shade of red. It’s not the fi rst time I’ve been in a sorry state while exploring the backwoods of the Mekong Delta. Usually, however, the malady only occurs when equally intoxicated Vietnamese gentlemen accompany me and there’s a clutch of discarded rice wine bott les lying beneath a Lilliputian plastic table. It isn’t the demon booze that ails me this time. It’s the fact that I’ve just pedalled 46km and the locals manning the rest stops in this, the most densely populated area of Vietnam, appear to have downed tools for the afternoon. I don’t blame them.
The temperature is pushing 40˚C and the only other cyclists on the road are occasional groups of young children pott ering leisurely home from school, the boys in spotless white shirts and the girls in traditional ao dai. Wobbly looking foreigners on long-distance bike rides are a bewildering and amusing anomaly here at the best of times, and especially so in the searing pre-monsoon heat.
I exhausted the last tepid drops from my water bott le about an hour ago, however, and I am in desperate need of refreshment. About 15 minutes ago, I thought I’d hit upon salvation when a stand selling nuoc mia (freshly pressed sugarcane juice) hovered into view through the heat haze. The owner, however, was absent.
liquid goldAccording to my guide Chinh, there are only another few kilometres to go before we pick up the sampan that will ferry us
VietnaM by bike
18
down the Mekong to the town of Vinh Long. There, a minibus will be waiting to usher us into air-conditioned relief and transport us to the city of Can Tho, where we will spend the night. The remaining few kilometres would be a formality for most, but to this parched and gym-hesitant Scotsman, the task ahead is as appealing as an evening spent pressed against the speakers in a Vietnamese nightclub.
A litt le further down the road we fi nally strike liquid gold. The lady manning the café doesn’t look chuff ed to be budged but she manages to rouse herself suffi ciently to present us with a round of drip-fi ltered ice coff ees and chilled water. Her job done, she sidles back to one of the café’s many hammocks. All of the other hanging beds are also occupied. “Mekong people are so lazy,” laughs Chinh as he drains his coff ee, sparks up the latest in a long line of Craven A cigarett es and sett les himself in his own suspended snoozing
sling. “They’ve got so much here already they don’t have to work that hard.” As a Delta native himself, Chinh’s comment is founded not in scorn but pride.
A lush landscape of emerald green fi elds, shady woods and sleepy villages, criss-crossed by canals and rivulets fed by the mighty river, the Delta is Vietnam’s land of plenty. Formed by sediment deposited by the Mekong, the area is one of the most fertile and productive in the world. Fruit, fi sh and fresh produce are abundant, while three rice crops per year yield enough grain to feed the entire country with a sizeable surplus. Contrast that with the two (and often only one) crops yielded from the Red River Delta near Hanoi – Vietnam’s other major rice-producing area – and you get an inkling of why northerners especially often view the people of the Delta as feckless.
Yet while many Hanoians get envious at this easy living,
“A lush landscape of emerald green fields, shady woods and sleepy villages, criss-crossed by canals and rivulets fed by the mighty river, the delta is Vietnam’s land of plenty”
VietnaM by bike
19
most visitors love the languid pace. That’s why I’m lying here in this hammock thanking the guardian angel of chunky cyclists for guiding me to this ice-cold bott le of water.
FreewheelingCareless brushes with dehydration aside, the Delta off ers fantastic scope for exploration by bicycle. It is pancake fl at, making it easy to negotiate, while its backcountry network of waterways, quiet lanes and traditional villages are a world away from the nation’s more frazzling att ractions. This is the second time I’ve biked it around the region.
Last time around I was here with my mother who was visiting me in Vietnam for a three-week holiday. It was an eventful trip. Over the course of three days, our group covered about 150km between My Tho and Can Tho, two of the Delta’s main cities. The route stuck almost exclusively to back-roads and narrow tracks barely wide enough to let two bikes pass in comfort. Emancipated from the scourge of the Vietnamese highway – the fume-belching, horn-honking truck – we were able to ease into the rhythm of rural life.
The cycling was special enough but it was the litt le events along the way that really made the experience. Stand-out memories include stumbling upon a cockfi ght in a dusty backyard and an impromptu karaoke session in a bar by the Mekong. I’ll also struggle to forget a complementary treatment in a hotel in Can Tho where the micro-skirted masseuse off ered me a happy ending in the fl imsy-
walled booth next to my mother. Luckily I didn’t know what she meant. (That’s my story and I’m sticking to it). This time I’m on my own so there’s less scope for rowdy group sing-alongs and familial shame.
First though I need to get out of Ho Chi Minh City. Vietnam’s southern hub can be a charmer but not when you are trying to escape it by road. The urban sprawl drags on for miles. The road is packed with stoic-faced motorcyclists and those devil trucks I mentioned earlier and the highway is lined with auto-parts shops and grimy-looking eateries serving delicacies such as thit cay (dog) and chao long (rice porridge with innards). Eventually, the ugliness subsides and swaying coconut palms and sparkling waterways signify the arrival of gentler territory.
The Delta proper starts when you encounter the fi rst branch of the Mekong at My Tho. We unpack the bikes and wave a wistful goodbye to the driver just outside the city. I’ve opted for a two-day tour this time so we’ll be cycling 50km each way on the roads between My Tho and Can Tho.
The fi rst day starts, as it tends to, with a certain degree of misguided enthusiasm. While Chinh, cigarett e already affi xed to his mouth, sticks to a tempo in keeping with his Buddha-like physique and obvious relish for a smoke, I race ahead greeting the frequent cries of salutation from passing kids in kind. Luckily, I calm down a litt le by the time we hit the 20km mark when the minor climbs up to bridges play havoc with my calves.
VietnaM by bike
20
lazy daysThe fl ow of Delta life is best appreciated at a languid pace anyhow. Indications of the region’s natural prosperity are everywhere. Giant propaganda posters hanging next to fi elds depict rosy-cheeked workers carting wheelbarrows piled high with spring onions. Drivers veer all over the road as their weathered Hondas struggle to carry the weight of the durian and jackfruit they are carrying. In fact I begin to lose track as Chinh recounts the array of crops and fruit being grown and fi sh being farmed on the passing landscapes.
Searing heat and exhaustion aside, it’s a great ride. The most scenic stretch of the journey comes on the fi rst day after a lunch of DIY rice-paper rolls with elephant ear fi sh, claypot pork and fresh fruit at a historic garden house near Cai Be. We leave the paved tarmac behind to plot a course over rickety bridges, through leafy forest glades and alongside waterways. Here local fi shermen and merchants can be seen mending their nets and loading their boats with produce to sell at the many fl oating markets in the region.
After narrowly missing out on decapitation descending from a bridge and overestimating the height of a rusting
BESt oF tHE rESt
Essential stops in Vietnam
HanoiVietnam’s capital remains one of Asia’s most enchanting cities. With more than 1000 years of history to call upon, the city doesn’t lack in heritage att ractions and fuses history with modernity to stirring eff ect. Its bars and cafes have a bohemian edge that the ones in Ho Chi Minh City lack, while the street food is more than worthy of its vaunted reputation.
Ha GiangFor spectacular mountain scenery and close encounters with Vietnam’s minority peoples, the northern province of Ha Giang is hard to beat. The area’s tapestry of rugged limestone peaks and rushing rivers off ers a visual feast and is best experienced on motorbikes.
Phu QuocThis island getaway in the Gulf of Thailand is undoubtedly Vietnam’s most mellow beach retreat. The main beach boasts accommodation that runs the gamut from backpacker basic to top-end opulence.
VietnaM by bike
21
corrugated roof, I’m glad to make it to the sampan that will glide me down the Mekong to Vinh Long. With the cycling over for the day I can fi nally kick back. As Chinh tries to make sense of my new Lumix camera, I drain a cold can of 333 beer and drift off to sleep while the boat eases down the river. By the time we get to Can Tho it’s just about time to eat again. Tour companies in Vietnam are single-minded in gett ing their guests to allott ed tourist restaurants that have paid commission. As a solo traveller and a resident of Vietnam, I can’t think of anything worse than chowing down on sanitised local cuisine with busloads of tourists on my own. To his credit, Chinh
heeds my entreaties and invites me to dine with the guides at a backstreet restaurant away from the river. Barbecued fi eld rat and deep fried eel-like fi sh with a tamarind dipping sauce make a surprisingly palatable banquet.
For the guides it is time to unwind and they do so in time-honoured Delta style with the help of the local rice wine. Thimble-like glasses are charged, recharged then charged again and the Can Tho night is punctured with loud cries of mot, hai, ba, yo (“one, two, three, cheers!”). My second Delta stupor of the day is turning out to be much more enjoyable than the fi rst.
Extra: vietnamtourismboard.org
“the flow of delta life is best appreciated at a languid pace anyhow. Indications of the region’s natural prosperity are everywhere”
VietnaM by bike
From July 1 some 300 companies and other
entities will face a bill of A$23 for every tonne of
carbon dioxide they emit.
By Ian Armitage
carbon
Like it or loathe it (and the consensus seems to be loathe it), the carbon tax is officially here.
Opposition Leader Tony Abbott has repeatedly called on
government to scrap it arguing it will swing like a “wrecking ball” through the economy and squeeze household budgets like a “python”.
But from July 1 just under 300 companies and other entities such as councils with large landfill sites faced a bill of A$23 for every tonne of carbon dioxide they emit.
22
23
explained
carbon
the carbon tax explained
The government says the plan will ensure the economy can grow without emissions growing at the same time.
The emissions will be tracked by the Clean Energy Regulator and the carbon price will rise by 2.5 percent a year in real terms until an emissions trading scheme, with a fl oating price determined by the market, starts from July 1, 2015.
Business has already backed the move with the Businesses for Clean Energy consortium saying a carbon price will
underpin the move to a clean economy.Spokesman Nathan Fabian said there
was strong support in the business community for carbon pricing but the coalition’s commitment to abolish it was creating uncertainty.
“Businesses have accepted there will have to be some sort of price constraint on carbon,” he told AAP.
The Australia Chamber of Commerce and Industry (ACCI) reacted by saying small and middle-ranking companies stood to lose.
tax The
24
the carbon tax explained
“Our members are overwhelmingly price takers in the marketplace and are not in the position of being able to unilaterally set prices and simply pass those on down the chain,” ACCI director of economics and industry policy Greg Evans told AAP.
So how exactly does the tax work and how will it affect you?
Well, there are some things you need to know. Firstly, the price will be applied to domestic aviation, domestic shipping, rail transport and non-transport use of fuels.
Companies liable for the carbon price will be able to buy permits overseas or domestically to offset their emissions.
“The most emissions-intensive industries will benefit from a A$9.2 billion Jobs and Competitiveness Program to ensure industry, local communities and workers have a smooth transition and a strong incentive to reduce their carbon pollution,” an industry expert told Australasia Outlook.
“The Australian Government has developed a comprehensive plan to move to a clean energy future,” he added.
An Energy Security Fund will allocate free carbon units and cash payments to strongly affected coal-fired electricity generators – but it comes with a condition, they have to publish Clean Energy Investment Plans which show how they will reduce their pollution, and by meeting power system reliability standards.
2000 megawatts of the worst-polluting power generation will also be shut down to make way for lower pollution generation.
A A$1.2 billion Clean Technology Program will help directly improve energy efficiency and reduce carbon pollution in manufacturing industries and support research and development in low pollution technologies.
The A$300 million Steel Transformation Plan will support and assist the industry transition to a clean energy future and recognises the pressures currently facing this industry.
An A$1.3 billion Coal Sector Jobs Package will also provide transitional assistance to help the coal industry to implement carbon abatement technologies for the mines that produce the most carbon pollution.
So there is a lot of assistance for
25
the carbon tax explained
affected businesses.“The amount of carbon pollution produced
varies greatly,” the government says. But what of the claims the tax will be
“toxic” for families’ costs of living?The government says nine out of
10 households have already started receiving compensation.
“There are measures designed to help those worst aff ected,” an insider told us.
The most obvious household impact will be through power prices rising by an average A$3.30 a week.
A number of bodies have been set up to help families and Prime Minister Julia Gillard has reassured households that Labor’s multibillion dollar compensation package will mitigate any rises and Australians would come to see it’s the right policy direction for the nation.
“It is appropriate with all of that doom has been spread around for months and months, for us to say to people, look the doomsayers were wrong,” she said.
Australians must now wait to see how prices rise as the impost rolls through the economy.
“An Energy Security Fund will allocate free carbon units and cash payments to strongly affected coal-fired electricity generators – but it comes with a condition, they have to publish Clean Energy Investment Plans, which show how they will reduce their pollution, and by meeting power system reliability standards.”
26
Pool ColourGuard® is the world’s fi rst non-fading surface protection system for
fi breglass pools says Ben Beale, Executive Director of Aquatic Leisure Technologies
Pty Ltd, Australia’s leading swimming pool designer and manufacturer. It holds the
exclusive license for the technology and, perhaps unsurprisingly, it has been good for business.
By Ian Armitage
SwimmingSwimming
27
aQUatic leisUre technoloGies
Focus Manufacturing
Aquatic Leisure Technologies (ALT) is Australia’s leading
swimming pool designer and manufacturer.
It enjoys the status of being one of the largest fi breglass pool manufacturers in the southern hemisphere and maintains around 50 percent of the Western Australian fi breglass pool market.
It is a quintessential West Australian, 100 percent family-owned and operated company.
“We’re a designer, manufacturer, marketer, retailer, distributor and installer of fi breglass and ceramic composite swimming pools,” says Ben Beale, ALT’s executive director. “We have been in business for 36 years and operate out of our manufacturing facility and head offi ce in Perth. Aquatic Leisure Technologies is the group name however we are bett er know in the market place by our brands. In WA we operate under the brands Aqua Technics, Buccaneer Pools and Sapphire Pools. Our export and East Coast Australian distribution is done under the Aqua Technics Pools
banner. We are involved in all facets of the swimming pool business and understand the complexities of each part of the business cycle. In other words we are not just a manufacturer or only a distributor or retailer. We do it all and that gives us advantages in delivering the best possible swimming pool to our customer whether that be a direct client or an interstate or export distributor.”
ALT’s strength lies in the quality of its product and the knowledge and skill of its people, he adds.
“Our product has always been excellent and now with the introduction of Pool ColourGuard®, an industry fi rst in surface
28
aQUatic leisUre technoloGies
Kwik Transport and Crane Hire are proud suppliers of transport and crane hire services to Aquatic Leisure Technologies with an association that commenced in May 2009.
With continued and sustainable investment in state of the art equipment and technology, and that of our people, we will further enhance our reputation as a key provider of ON DEMAND transport and crane hire in Western Australia.
Aquatic Leisure Technologies is an extremely important partner for Kwik and we are pleased to be involved in their success by offering crane hire, transport, site inspections and all relevant permit requirements.
Kwik Transport & Crane Hire
protection for fi breglass swimming pools, we have gone further ahead of our competitors in the quality of pool shell we manufacture.”
Pool ColourGuard® is patent protected and is unmatched by any surface fi nish on any fi breglass pool anywhere in the world – with it, your pool will retain its vivid, brilliant colour for many, many years.
The science behind it is fairly complex, but in simple terms, the pool colour is separated from the bleaching eff ects of chlorine, bromine or other oxidants by Pool ColourGuard’s® initial coat and it means colours won’t fade.
The technology was developed in WA by Hydrawall Pty Ltd and is licensed exclusively to ALT.
“There is nothing like this on the market. We are an authorised manufacturer and it means we can put a lifetime guarantee on the surface of the pool which has never been off ered before,” Mr Beale says.
“The technology has given us a way to push into markets that we may not have otherwise entered. There has been huge demand for it. We’ve reviewed our strategy in response.”
The innovation has helped ALT gain market share.
It is targeting further growth.“We are gaining market share in our
retail markets in Western Australian and our distribution model especially in the Eastern Australian markets is growing very quickly with distributors keen to get involved with Aqua Technics Pools and Pool ColourGuard®. Our Export markets are strong, with a great mixture of long-term distributors and new and exciting partners.
“The business is going well; at a time of very diffi cult economic conditions we continue to grow our fi breglass and ceramic composite swimming pools business. We are gaining market share in existing markets and achieving good penetration into new markets. I att ribute that to Pool ColourGuard®, experience in the industry and a quality culture.”
Aquatic Leisure Technologies recently sold its spa pool business unit Jadan Spas in a bid to increase focus on its fi breglass pool business. It is also involved in the commercial swimming pool segment.
Transport Hire
Our General Transport division offers highly Our General Transport division offers highly experienced operators in all areas of transport, from 5 to 12 Tonne table top vehicles to all heavy haulage requirements, including semi trailers, extendables, tilt trays, low loaders and floats.
Crane Hire
Kwik’s Crane division is one of the largest in Kwik’s Crane division is one of the largest in Perth; with a full range of Franna 4 wheel drive articulated cranes, Tadano City class cranes (Tom Thumbs), and a full range of slewing cranes including truck mounted cranes and All Terrain Cranes of all capacities.
172 Camboon Rd.Malaga WA 6090
www.kwik.net.au T: 08 9249 4222F: 08 9270 8919
“We have a clear focus on our core business of fi breglass pools and commercial swimming pool construction,” Beale explains. “We have been market leaders for many years and the Pool ColourGuard® introduction has again reinforced this. Whilst our product is superior we position the product to cater for both the middle and top end of the market.”
ALT has over 60 modern designs and can cater for almost every taste.
It is well placed for future success.“We are always looking to improve in
every aspect of our business,” says Beale. “The industry is tough at the moment with the global economy how it is but it will turn and we will be best-placed to maximise our advantages in the market when it does.
“The plan is to continue the mix of retail sales in Western Australia, continue our expansion and penetration in East Coast Australia and aim for continued growth in our export markets.”
If you need a pool you know who to call…
to learn more visit www.aqualeisure.com.au.
“there is nothing like this on the market. We are an authorised manufacturer and it means we can put a lifetime guarantee on the surface of the pool which has never been offered before”
29
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choice
atlas copco
Inspiring you to make the
31
Atlas Copco is an industrial group with world-leading positions
in several markets – fostering a culture of innovation has helped
customers “make the right choice” and seen the business grow.
Australasia Outlook talks to Atlas Copco Compressors Australia’s
Business Line Manager, Industrial Air Division, Jeff Treble.
By Ian Armitage
choice
The past year has been a good one for Atlas Copco Australia. With a heritage of over 50 years it is one of the country’s leading and most trusted suppliers of air and gas compressors and generators, pneumatic
and electric power tools, plus drilling, mining and demolition equipment.
It really has gone from strength to strength, supported by the might, knowledge and experience of the global Atlas Copco group.
“We are a world-leading provider of industrial productivity solutions,” says Atlas Copco Compressors Australia’s Business Line Manager, Industrial Air Division, Jeff Treble. “Our products and services range from drill rigs, underground trucks and loaders to compressed air and gas equipment, generators, industrial tools and assembly systems and rental services.
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Focus Manufacturing
32
atlas copco
Bernardi Engineering and Atlas Copco have worked in partnership since 1996 servicing the compressed air market.
We work with businesses, supplying compressed air systems for the manufacturing industry. We cater to the specifi c requirements of our customer, including the design of complete systems for start-up companies, redesign or modify current systems, for example expansions or energy effi ciency.
Bernardi Engineering is proud of their continuing association with Atlas Copco.
Bernardi Engineering Pty Ltd
“We off er a full range of parts and services support with branches throughout Australia.”
Atlas Copco fi rst set up offi ce in Sydney’s Kings Cross in 1950.
Going by the name of Atlas Diesel, the company off ered a range of innovative European products to Australia’s burgeoning engineering and infrastructure sector.
Today the business is very diff erent - it has over 30 branches and regional offi ces Australia-wide, providing extensive service and sales support.
Its head offi ce is now in Blacktown in NSW, where the four business areas of Construction and Mining, Compressors, Industrial Tools and Atlas Copco Rental work together.
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The Group delivers sustainable solutions for increased customer productivity through innovative products and services.
“Innovation is at the heart of what all of us at Atlas Copco do, because we know that there is always a bett er way,” says Mr Treble. “That is extremely important because, on our side of the business - and given the fact we sell a lot of product into the manufacturing industry - the dollar is tight with customers and it’s diffi cult for them to keep the momentum going and continue investment. They’ve cut back on capital expenditure.
“Although saying that, we have done a prett y good job and the result isn’t too bad at this point in the year.”
The focus, he says, has been on adding value.
“One way to do that is to look at energy effi ciency - if we can show our customers long-term payback
and effi ciency gains in utilising our equipment then we still stand a prett y good chance of convincing them to invest in upgrades to their equipment. I guess the challenge comes when they don’t have enough money to invest in the fi rst place, although there is a payback normally after about three years.”
Innovation is the fi rm’s lifeblood and unsurprisingly it has had a number of new product releases in the last year.
What is surprising isn’t that it is bringing out new technology, but that it is increasing its penetration in new markets, Treble says.
“We’re expanding our business into other, non-traditional areas. Compact compressors have a short life of around six years after which effi ciency gain is normally achieved through an upgrade. We’ve just had a big launch in Barcelona last month of a new 30-90 kW oil-injected screw
34
atlas copco
compressor range which off ers signifi cant improvements in sustainability and reliability, as well as performance increases of up to 10 percent. The new GA 30+ to 90 range is available in three diff erent variants making it suitable for a wide variety of applications. We also had a release of some other products such as oxygen generators and some vacuum equipment as well so it’s exciting times.”
Forward thinking has made Atlas Copco resilient, yet adaptable to change, he says.
“Throughout the global fi nancial crisis we stood strong; some of our competitors bolted. It’s a brand that’s internationally recognised and we have products that are fi rst class, leading the marketplace. It’s also because we have strategies of venturing into various industries that allow us to not only be in manufacturing but to also perhaps be in, for example, hospitals which is a big industry for the industrial area. During the fi nancial crisis the government was still spending money in that fi eld and having a diverse product range
“We are known across the board for having the most efficient compressors in the world, always innovating, bringing new products to the marketplace”
35
atlas copco
Focus Manufacturing
and a diverse strategy allowed us to be quite resilient.”
Mr Treble is worried, though, if the dollar stays high.
“It is concerning - we’ve seen a lot of manufacturing businesses close up and move off shore. We’re pinning our hopes on the mining industry and anyone involved in that industry knows it’s a very sporadic environment.”
The upcoming Mineral Resource Rent Tax (MRRT) is another factor.
“It’s scaring customers,” Treble admits. “There is a lot of uncertainty with regards to the carbon tax - are customers going to be worse or bett er off ? I suppose having products that have the highest effi ciency in the marketplace will comparatively save the customer in the long
term and stand us in good stead. But it is still uncertain - the issue is really is how are we going to come out the other side? Will people start investing in effi ciency gains? Or will they be holding off , hoping that they don’t collapse? “That is the big unknown.”
The business however is in good shape. “We judge ourselves heavily on market share as a business and
gaining market share is something that we always strive for. No matt er how quiet the industry is, if there’s market share to gain then we can always improve our result and make Atlas Copco a more stable business moving forward into tougher times. Continuing our focus on that, we’re implementing processes and procedures now to strengthen development, innovation and customer relationships. That’s a big part of where we hope to be in the next fi ve years. Effi ciency and mobility are important.”
Atlas Copco compressors are renowned for being high quality and customers are often prepared to pay a “litt le extra” for a product that they feel is going to give them reliability and a good return on investment - Atlas Copco ticks those boxes.
“We are known across the board for having the most effi cient compressors in the world, always innovating, bringing new products to the marketplace,” Treble concludes.
to learn more visit www.atlascopco.com.au
36
Conveniently located in Perth WA, Mackay QLD
and Mt Thorley NSW, Best Tractor Parts is dedicated to sourcing and servicing
mining parts and equipment from all over the world.
By Ian Armitage
digging deepdigging deep
Privately-owned Perth-based mining parts and equipment company Best Tractor Parts (BTP) is one of Australia’s leading suppliers of mining equipment parts, sales and rentals. Its head offi ce in Hazelmere
and it also has offi ces in Mackay in Queensland and Mt Thorley in New South Wales.
“BTP is an Australian family-owned company, delivering a second-to-none service, managed by the Murphy Family,” says operations manager (Queensland) Shane Whitt ington, who talked to us from the Mackay offi ce. “We supply parts for brands like Caterpillar, Komatsu, Hitachi and Liebherr and we’ve been highly successful in providing a competitive service to customers and are established with the major mining and contracting companies.”
BTP WA has its own in-house hydraulics and engineering division, which “rapidly reduces turnaround
37
for successfor successdigging deepdigging deep
for successdigging deep
for successfor successdigging deep
for success
best tractor parts
Focus Mining
time and rebuild costs,” Whitt ington adds. In 2010 it formed BTP Equipment Pty Ltd (BTPE), replacing three individual rental and sales divisions in Western Australia, Queensland and New South Wales. That division off ers the latest mining equipment to buy or rent.
“We are renowned for our outstanding team of people dedicated to sourcing, dismantling, restoring, maintaining and delivering mining parts and equipment to global mine sites in the shortest possible time,” Whitt ington says.
Of course the carbon tax has now come to pass and he expects it could have a positive eff ect on the business – although he is waiting to see how prices rise as the consequences of the tax begin to emerge.
“In terms of costs, we have a global sourcing strategy, which keeps prices down,” says Whitt ington. “In terms of the mining tax, where there are cost restraints from the customer, we would see that as positive for business. Obviously if the aff ect is so severe that they stop spending altogether that could be a problem. But, at the end of the day, they’ve got to keep their businesses running and we’re able to off er options that control and reduce costs in terms of operating machinery and enable customers to improve their margins for profi t. For our type of business I would say it will ultimately be benefi cial as mining houses will have to fi nd ways to reduce costs – and investing in reduced cost options that BTP can provide is a good starting point.”
best tractor parts
Mining accounts for something like 90 percent of all BTP’s business, although it does support customers within the construction and farming industry. BTP strives to deliver a solution to any customer, no matt er what industry they operate in.
“We’re located close to the mines,” Whitt ington adds. “We’re in the Bowen Basin, Hunter Valley and in WA where mining are the major industries.”
And the plan is to get more business. BTP is investigating the acquisition of land in Queensland to allow for expansion.
“We do want to increase our potential business and if we’re going to do that we need more space. We will have to expand our storage facilities and also workshops and customer services to ensure we don’t drop
standards. The idea is to increase capacity to take on more work and increase revenue. We’re looking to increase capacity
“We’ve done brilliantly. Since 1997 we’ve grown from a business with A$5 million revenue to one that has a revenue of A$170 million – that includes the hire and parts sides of the business.
“We are increasing our expectations every year and we’re continually meeting prett y ambitious growth targets.”
Future success hinges on good commodity prices – a good price means higher demand, he says.
“We are driven by demand and that does lead us down new avenues, for instance, we will soon be expanding our business into transmission testing for internal quality and to open up new revenue streams.
38
“We are increasing our expectations every year and we’re continually
meeting pretty
ambitious growth targets”
“There are several areas where we are looking to add a bit more value for the customer. That is very important for our business.”
To increase exposure, BTP will be att ending the upcoming Queensland Mining & Engineering (QME) Expo. BTP has been involved from the infancy of QME, realising the importance of being seen and being able to talk to people from all over the world during the course of the event about its business, says Whitt ington. “We see QME as an opportunity to showcase our product, our staff , and our professionalism and vast knowledge of OEM products. This is critical to our business and one we treat with the up most respect. If we meet one person on the day that was unaware of our service, product, and staff , we have succeeded
“The event is about “gett ing out there and meeting customers and people in the industry. A lot of top-level customer representatives will be att ending and it is also a great opportunity to see what goods and services can be provided and what is out there. Sometimes your sales network can’t reach everybody all the time and the mining
industry is quite transient. This particular event is a good chance to meet people face-to-face and ensure they understand the sorts of services and off ering we have and basically how we can help their business.”
What makes BTP stand out is that it is a customer-focused business. Thousands of customers nationwide trust it.
“This is still a determined business and what comes fi rst is always the customer. Obviously things don’t always go to plan in every single transaction but the support you give the customer and having the ability to quickly turn a negative into a positive gives the customer confi dence. I know we are able to do that. . Sometimes if you’re a larger corporate business you’re limited for solutions but with BTP the managing directors are there and accessible which means we can respond and change tact and support the customer by coming up with other alternatives. Other companies may not be able to provide that fl exibility.”
to learn more visit www.bestt ractorparts.com.au.
39
ITR PACIFIC
- UNDERCARRIAGE - GROUND ENGAGING TOOLS - REPAIR PARTS -
Unitywater is the water distribution and retail business serving the Moreton Bay and Sunshine Coast communities north of Brisbane. It is one of the three distributor-retailer businesses established by the
Queensland Government to serve diff erent parts of South East Queensland (SEQ).
It’s a challenge.But it’s one the organisation has embraced.“Unitywater was born out of a Queensland Water
Commission (QWC) review in 2007 where the state government initiated core institutional reforms. As part of this review, three local government-owned retailers were established in July 2010, those being Unitywater, Allconnex and Queensland Urban Utilities,” says acting CEO George Theo.
40
Unitywater’s acting CEO George Theo talks
about the challenges facing the utility.
By Ian Armitage
Taking important steps
forward
Unitywater is the water distribution and Unitywater is the water distribution and Uretail business serving the Moreton Bay and Sunshine Coast communities north of Brisbane. It is one of the three distributor-retailer businesses established by the
Queensland Government to serve diff erent parts of South East Queensland (SEQ).
It’s a challenge.But it’s one the organisation has embraced.“Unitywater was born out of a Queensland Water
Commission (QWC) review in 2007 where the state government initiated core institutional reforms. As part
Unitywater’s acting CEO George Theo talks
about the challenges facing the utility.
By Ian Armitage
Taking important steps
forwardTaking important steps
forwardTaking important steps
41
Unitywater
Focus utilities
He says Unitywater delivers water supply, sewerage, recycled water, and trade waste services for over 290,000 residential and business customer accounts, covering a population of approximately 680,000.
“I’ve been in the water industry for 27 years. I’ve worked in the Victoria and Queensland jurisdictions and I’ve been with Unitywater since late 2010, serving as COO and now acting CEO – since May 2012.
“Working for Unitywater is exciting because it is a new business, just two years old, and we manage A$2.7 billion worth of assets. It is challenging because it is an organisation that has been created from six former council-operated water businesses to cover two council areas – and that is an enormous challenge.
“To fulfi l our obligations we’ve worked hard to create the right culture, identify savings and cut costs. We’ve also invested fairly heavily in processes and technology.”
Customers have certainly benefi ted.“One major investment has been in a new
customer service and billing system. We use Gentrack’s Velocity software – it is a superb water billing and CRM solution.
“Having come from six council-operated water businesses, there were legacy and logistical problems and several system duplications. In order for us to provide an aff ordable service to our customers, we needed a specialist solution designed for water, sewerage, and trade waste billing. The new system means customers now receive quarterly accounts and all charges, including fi xed access fees, apply in arrears. Many customers asked us to address the long delays between water meters being read and accounts being issued and we’ve listened.”
Issuing accounts within days rather than months has made it easier for customers to monitor their water use, he says.
It also means problems such as concealed leaks on private property are identifi ed much more quickly.
The recently announced price freeze for 2012-13 is evidence of Unitywater’s progress in cutt ing costs and identifying savings across the organisation.
“We listened to customers on this one. The freeze has been achieved through signifi cant cost savings made over the past two years –
these equate to a A$15 reduction per account, so it is eff ectively A$15 that the customer won’t incur.
“We’ve merged call centres, control rooms, standardised and rationalised fl eet and computer systems across the Moreton Bay and Sunshine Coast council areas. We’ve also optimised our capital works programme, identifying savings where we can, while still maintaining environmental and service delivery.
“The price freeze though has no impact on the rollout of our A$120 million capital works programme in 2012-13.”
Aff ordability of services is a major concern going forward, Theo says.
“We are aware that the cost of providing services is a concern for our customers. That’s why we’ve done all we can to try and reduce costs, fi nding operational savings where we can and generally improving as much as possible.”
The introduction of the carbon tax will add more cost in the business.
“We’re very much focused on doing everything we can to reduce operational costs and capital expenditure, while continuing to provide value for customers and meet the demands of a growing region. We do that in a number of ways. Interestingly our capital works programme over the last two years reduced from about A$250 million a year to A$150 million a year. That has come down by really questioning the need for the projects and the assumptions underpinning them, questioning what we’re trying to solve, and then making sure that we’ve got good options and solutions.
“We have to be prudent and make sure delivery is effi cient. Indeed, the prudency and the effi ciency of our capital programmes is paramount. We have worked really hard to make sure we’re not over investing or pre-investing in solutions, and that we’re making the right level of investment in the right solutions at the right time.”
It has led the organisation to focus on innovation.
“Instead of investing in the typical things a utility would invest in, like pipes and pumps, we’re looking at investing in non-traditional solutions. For example, when a sewage treatment plant reaches
water billing and CRM solution. “Having come from six council-operated
water businesses, there were legacy and logistical problems and several system duplications. In order for us to provide an aff ordable service to our customers, we needed a specialist solution designed for water, sewerage, and trade waste billing. The new system means customers now receive quarterly accounts and all charges, including fi xed access fees, apply in arrears. Many customers asked us to address the long delays between water meters being read and accounts being issued and we’ve listened.”
Issuing accounts within days rather than months has made it easier for customers to monitor their water use, he says.
It also means problems such as concealed leaks on private property are identifi ed much more quickly.
The recently announced price freeze for 2012-13 is evidence of Unitywater’s progress in cutt ing costs and identifying savings
He says Unitywater delivers water supply, sewerage, recycled water, and trade waste services for over 290,000 residential and business customer accounts, covering a population of approximately 680,000.
“I’ve been in the water industry for 27 years. I’ve worked in the Victoria and Queensland jurisdictions and I’ve been with Unitywater since late 2010, serving as COO and now acting CEO – since May 2012.
“Working for Unitywater is exciting because it is a new business, just two years old, and we manage A$2.7 billion worth of assets. It is challenging because it is an organisation that has been created from six former council-operated water businesses to cover two council areas – and that is an enormous challenge.
“To fulfi l our obligations we’ve worked hard to create the right culture, identify savings and cut costs. We’ve also invested fairly heavily in processes and technology.”
Customers have certainly benefi ted.“One major investment has been in a new
customer service and billing system. We use Gentrack’s Velocity software – it is a superb water billing and CRM solution.
42
Unitywater
capacity, we can consider inter-catchment transfers within the sewerage network instead of expensive upgrades. That means we can consider transporting sewage to a neighbouring treatment plant that has spare capacity, thus deferring the need for investments where possible. That’s a cost that isn’t passed onto the customer and it means we can keep bills as low as possible.”
The area’s water future is secure, he says.
“We do have fairly secure and reliable water supplies as a result of the SEQ water grid. The grid is an extensive network of potable bulk water pipelines that connect areas with oversupply of water to those areas lacking water. And while a new desalination plant now exists on the Gold Coast, significant rainfall over the last two years means dependency on manufactured water is not high at the moment – although it’s good to know that you’ve got that insurance policy if the dams should run low.
“While security and reliability is important, it’s probably not an urgent issue like it was a few years back. I think one of the side effects of securing a reliable water supply in SEQ has been the cost, which obviously flows through to the customer. This is why we are working hard to ensure the services we provide are affordable and not unnecessarily stretching the customer’s household budget.”
The future for Unitywater’s customers and the region is bright.
“There are many new developments currently being planned, that will add tens of thousands of customers onto the water supply and sewerage network. We feel we have a significant role to play in the
development of the region.”And what’s the secret to
Unitywater’s success? “I think what’s essential is to have a strategic plan that focuses on the things that are really important. When we were established as an organisation we developed four strategic objectives – those being customer satisfaction, having an integrated business, ensuring that our people are proud and productive, and that we can provide sustainable value and growth. Based on those four pillars there were a suite of initiatives that focused on getting the backyard in order, having a solid foundation, creating good opportunities to learn from, and starting to add more value. We’ve achieved a lot so far and I think we can be proud of what we have accomplished to date, but there is more to do.”
to learn more visit www.unitywater.com.
Dormway is proud to be part of the team delivering infrastructure projects with Unity Water, being a member of the panel of providers since 2006. We share the values of integrity, competency, reliability, diligence and safety.
We understand the importance of achieving mutually beneficial outcomes with our clients and are proud of our ability to look ahead and identify problems and implement solutions so that projects are not delayed.
Dormway has a long history of delivering projects ahead of schedule and within budget whilst meeting safety, environmental and quality targets. We look forward to further developing an ongoing relationship with Unity Water.
Dormway
Dormway is an experienced construction firm specialising in pipeline and infrastructure construction characterised by:• Difficult ground conditions• Constrained sites• Environmentally sensitive areas• Complex and challenging work
We install approximately 60,000 metres of pipeline annually and have We install approximately 60,000 metres of pipeline annually and have the resources to deliver individual works up to $10 million dollars.
We are nationally code compliant and we have a fully integrated and documented management system addressing quality assurance, environmental management and workplace health and safety.
• Pipeline construction• Trenchless excavation• Pumping stations• Emergency overflow storage•• Large concrete
structures• Rehabilitation of
pipelines and manholes by installation of PE liners• PE lining•• Civil construction
• Unity Water
• Qld Urban Utilities
• Allconnex
• Mackay Regional Council
• Issac Regional Council
• Tenix
•• John Holland Group
• Ablgroup
About Dormway
1. Track Record2. Experience3. Our People4. Resourses
Why Choose Us?1. Integrity2. Competency3. Reliability4. Diligence
Our Values
Our Services Our Clients Include:
www.dormway.com.au
Address:176 Bukulla Street Wacol, Queensland 4076
Postal Address:PO Box 211Sumner Park, Queensland 4074
Phone: 07 3718 4777Fax: 07 3879 4348Email: [email protected]
44
Uniquely
44
45
Australasia Outlook profi les The Tappoo Group, an
integral part of the business environment in Fiji.
By Ian Armitage
Uniquely Fijian travel retailer Tappoo Group had an excellent 2011, att ributable largely to the growth in tourism.
Tourism is of course a vital industry in Fiji and it is an
important sector for the Tappoo Group, which is an integral part of the local business environment.
“The Tappoo Group of Companies retails, wholesales and supports an extensive range of high-quality products. We are unique both in breadth of services and products available and the importance we place in developing good, long-lasting relationships,” says Tappoo executive Kaushal Tappoo.
The family-owned and operated retailer currently has one main 12,000sq ft ground fl oor departures outlet, a landside store and various speciality outlets, including a Fiji Market store off ering local souvenirs and handicrafts at Nadi International airport. A renovation of its arrivals shop is on the horizon.
“Last year was a great one. Tourism has been performing well in Fiji and our shops have done well as a result. All categories including liquor and tobacco, perfume and cosmetics and jewellery were strong.
“Our story is a fantastic growth story. We have grown rapidly over the last 15 to 20 years, opening up new ventures and businesses. When I fi rst came into the business we had a much smaller scale distribution business and fewer retail outlets. Obviously now things are diff erent. We’ve opened new outlets and expanded the distribution network, with new brands coming into Fiji. Of course we have TappooCity now too and we own 50 percent shareholding in the Novotel Hotel and Mercure Hotel in Nandi.”
He says this year began positively, but sales in April were down 30 percent due to the severe fl oods in March.
“Tourism is the number one industry in Fiji and as a result our airport businesses are doing very well. The business enjoyed double-digit growth in the fi rst quarter but it came to a halt in April following the fl oods. Thankfully we saw improvement in May and June so overall we are still up.
“We have a presence at Nadi and Nausori, off ering a variety of stores for both departing
the tappoo GroUp
Focus travel
Australasia Outlook profi les The Tappoo Group, an
integral part of the business environment in Fiji.
By Ian Armitage
46
the tappoo GroUp
as well as arriving international passengers.
“Like I said, thankfully we appeared to have turned the corner in May and June and things are looking more positive.”
Regarding the existing arrivals store, he says: “At the moment we haven’t started on that but we are in negotiations with Airports Fiji and it will be a total re-fi t.”
The passenger mix at Fiji’s airports comprises mostly Australians (50 percent), New Zealanders (30 percent) and Europeans and Asians (20 percent).
Tailoring the product accordingly is very important.
“We tailor the product off er in our stores as much as we can,”
Tappoo explains. “If you look at Australian duty-free for instance it is liquor, tobacco, fragrances and electronics that are the top-selling product categories. High-end fashion is not that strong at Australian airports.
“The Tappoo group believes in tourism because while our TappooCity complex and other stores does cater for our locals, a lot of our retail business is directed at tourists as well.”
TappooCity is the new six-storey shopping mall in the heart of the capital city Suva, a structure that is uniquely Fijian.
“It is a shopping experience beyond anything in Fiji,” says Tappoo. “Our store occupies three levels of the building,
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Because we believe travellers are as unique as our whiskies, we’re keen to share with you our special gift presentations and exclusive expressions. Look out for Age of Discovery Madeira Cask and Bourbon Cask Reserve, along with many Private Vintage Reserves at airports internationally.
Glenfi ddich
“the tappoo group believes in tourism because while our tappooCity complex and other stores do cater for our locals, a lot of our retail business is directed at tourists aswell”
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48
the tappoo GroUp
which also has an international foodcourt and speciality shops, while levels 5 and 6 are reserved for executive offi ces.”
There isn’t a lot Tappoo Group doesn’t do. In addition to the above it is also the supplier of Pepsi products in Fiji, while it distributes and markets a wide range of other distinguished brands (such as Gillett e and Cadbury).
On top of that, it sells, markets and services Kia cars and SUVs.
“Specifi cally with Pepsi, we bott le it and market and distribute products for the local market at our factory in Lautoka. A bigger factory is in the pipeline and we have a number of other carbonated drinks in our distribution line-up.”
The secret to Tappoo’s success is simple he says: family.
“What motivates us is the fact that it is a family business. There’s a lot of love within the family for our brothers and uncles and there’s a lot of harmony and unity. The decision-making process
is done in complete harmony - we want to make informed decisions in the best interests of the company. The culture has been very much one of unity, togetherness and we’ve taken individualism out of it. From a personal point of view, although I look after the distribution and airport side of the business, I do also get involved in the retail side and other areas and it’s always been encouraged for family members to get involved in the other parts of the business. Many hands make light work!
“My elder cousin Harnish is the deputy CEO,” he adds. “Harnish looks after the perfumes, cosmetics and fashion business. He also oversees the IT and fi nance. We work together on a lot of things and the good thing is that we’ve all been treated equally - that culture has always been there. Everyone equally contributes. The family is very much from the unity point of
“What motivates us is the fact that it is a family business. there’s a lot of love within the family for our brothers and uncles and there’s a lot of harmony and unity”
49
the tappoo GroUp
view and at every stage we’ve tried to be honest and integrity is a big part of our business. We’re very proud of that. This is our business and no one is working harder than the other.”
The Tappoo family, known for their commercial and social commitment, has operated the business for the past seven decades.
The Group won the AON Excellence in Tourism Awards for Excellence in shopping in 2008 and Chairman Kanti Tappoo was presented with a lifetime achievement award by the Prime Minister.
“It recognises a lifetime commitment to excellence in tourism,” says Tappoo. “He founded and helped shape a business that is very much a Fiji icon.”
The Tapoo Group was founded on 23 August 1941.
to learn more visit www.tappoo-group.com.
Focus travel
50
featCheesy
51
Floridia cheese
Focus Food and Agriculture
If you’re a cheese enthusiast, Floridia Cheese will undoubtedly delight you. After migrating to Australia from Southern
Sicily in 1952, the family bought a Bundoora dairy farm where Mauro Montalto established the fi rm and named it after his hometown. He continued in his father’s footsteps by making traditional, fi ne Italian cheese for family, friends and local grocers and business, thanks to many years of hard work, boomed. Floridia Cheese remains Australia’s oldest family owned manufacturer of Italian and Continental style cheese now spanning three generations.
“We make ricott a, fett a, pecorino, semi-hard, hard and mozzarella cheese and our cheeses have received several Champion Cheese awards,” says Mauro Montalto, grandson of the late founder.
The cheesemaker is no longer in Bundoora – it moved to a large 4822 square metre modern manufacturing plant in the Melbourne suburb of Thomastown a decade ago.
That move has been a springboard for growth.
Floridia Cheese is Australia’s most
respected traditional Italian cheese
manufacturer and is considered the
industry benchmark for consistency
and quality.
By Ian Armitage
“We use the most up to date technology available without compromising the tradition or quality of its cheese,” Mr Montalto says. “The primary focus is not the amount of cheese
“We use the most up to date technology available without compromising the tradition or quality of its cheese”
52
Floridia cheese
we make but the quality of our product – we’ve managed to grow the business 100 percent in the last five years without losing any quality.”
Great family businesses like Floridia Cheese share certain traits: These families have a lot of pride in their forebears’ accomplishments, yet they are unusual in the business world for their modesty. They are quick to credit the hard work of previous generations yet speak humbly of their own contributions. And they are about a lot more than just material success. They have a powerful sense of duty both to the past and to the future.
“We do not compromise methods or substitute traditional cheese making for convenience or higher volume production,” Montalto says. “Yes we utilises the most up-to-date technology available but that is not to the detriment of quality or tradition. We also have a team of superb cheesemakers whose integrity is second to none. Their attention to
“We do not compromise methods or substitute traditional cheese making for convenience or higher volume production”
“Doing it Better”
Minpac Australia Pty. Ltd is a specialist supplier of high barrier packaging materials to the perishable food industry.
Products supplied include:
Form/Fill/Seal Films
Lidding Films – for Lidding Films – for PP/PVC/APET/CPET & Smooth Wall Aluminium Trays
Flexible and Semi-Rigid Thermoform Films
Vacuum PouchesVacuum Pouches
P.O. Box 1758 Collingwood, Victoria 3066
37 Lincoln Street, Richmond Victoria 3121
Phone: 03 9421 6777Fax: 03 9421 6788
detail throughout the manufacturing process is of the highest possible standard – and that comes across in the product.
“In terms of our success, a lot of it comes down to my grandfather as the business was founded on solid principles and foundations. The structure has been there from the start and it’s just been a matter of how do you grow and maintain that.”
Montalto is a 21st century thinker, a manufacturing techy that loves machines, recovering lost productivity and improving efficiency.
The family, and business for that matter, is lucky to have him – especially with margins getting ever tighter and the dollar getting stronger.
“The implementation of new technology will be vital as we enter the future. In terms of building capacity there are no restrictions here in Thomastown, so we can expand if we want. Cash flow is a limiting factor - as is storage space - but we do have more than enough space to accommodate future expansion if we want.
“Our goal is to remain the leading manufacturer of Italian cheese, by continually improving standards for products which offer exceptional quality and outstanding value.”
The cheese market he says is strong - as is demand.
“Listen a good example is ricotta. Ricotta is still a growing market. It hasn’t plateaued at this point. And it is an area where we have been looking at technology and how it can improve our profitability and quality. We still make ricotta very traditionally – it is handpicked, drained and refrigerated, and then packed the following day, for example. We’ve been looking at ways to automate some of that and extend shelf life, as traditionally ricotta is not a good shelf-stable product. The equipment we’ve used isn’t that different to what you find at other companies but it is what you do with the machine and your processes that will help extend the product’s life. Our perspective is that we want to maintain our heritage, the standard and quality of the product that we make, but improve where we can by raising standards, looking at manufacturing processes and investing in cutting-edge technology.”
“the implementation of new technology will be vital as we enter the future. In terms of building capacity there are no restrictions here in thomastown, so we can expand if we want”
54
Consumers have demanded portion control and Floridia has reacted positively to the trend.
“That is something consumers are after; for instance we actually were the first people to see a need to create the first single serve portion of grated parmesan.
“It was developed primarily for the food service industry and was intended to provide a safe, hygienic and consistently high quality measure, to dress and add flavour to prepared food dishes.
“Requests are always coming in for more specialised packaging, with portion control
for convenience and we have invested a considerable amount of money. I don’t want to disclose exactly what we’re doing at this present time as we’ve still to finalise the final steps, but it will be a significant contributor to our growth going forward.”
The future for this firm is bright. “We will continue our tradition of making Italian style cheese items with unique selling points – whether that is by commissioning the world’s latest technology in mozzarella manufacture and presentation or continuing to craft our famous wheels of hard cheese.
“Anybody can go out and buy the machines to make cheese. What they don’t have is the knowledge or heritage to create world-class cheeses. I’m proud that we’ve been able to buy some state of the art technology and that we’ve been able to improve what was already a superb product in many cases. That’s a real achievement.”
To learn more visit www.floridiacheese.com.au.
Floridia cheese
www.crouchtransport.com.au
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fax. 02 6921 2006 email. [email protected]
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